The U.S. Small Business Administration (SBA) is a federal agency that helps entrepreneurs manage their businesses and gain access to capital. SBA loans have some of the lowest interest rates available, and some loans are available exclusively to small business owners. The agency doesn’t lend the money directly to entrepreneurs to start or grow a business, but sets guidelines for loans made by its partners (lenders, community development organizations and micro-lending institutions). The SBA guarantees the repayments on these loans to minimize the risk for its lending partners. SBA Linc can connect you with SBA approved lenders in your state.
The SBA pre-screens loan applicants with FICO’s SBSS score, a small business credit score. While most businesses, even younger ones, can qualify for an SBA loan – having a limited business history makes it more difficult. SBA offers a variety of loan programs for very specific purposes. If you apply for an SBA loan, check with your local approved lender about how you can use these funds.